Bronte Capital: Stocks are in a bubble and crypto trading is a sign of 'mania'

Bronte Capital Management warned investors in a fund letter that the stock market is in a bubble. The company pointed to the recent trading in the cryptocurrency market as a sign of "where in the mania we are," while mocking Elon Musk for pushing Dogecoin (DOGE-USD) on Twitter. The fund provided the "over-the-top" retail stock boom as a major piece of evidence of bubble conditions within the stock market. "Millions of Americans ... had opened online trading accounts and were buying shares in companies that they had never heard of, recommended online by people they had never met, and sometimes with money that they did not have," Bronte said. "This is a bubble. Bubbles make market participants look stupid," the fund added. On crypto, Bronte argued that trading in Dogecoin provided the best example of the "mania" it sees in overall markets. The fund called the crypto a "functionally useless"